BoE may follow Fed’s December rate hike

The BoE is expected to hike its bank rate around a year later the Fed. The money market curve in the U.K. is quite flat and a sharp steepness expected to see. UK headline inflation is expected to increase above 1% by Q2 16 and likely to reach 1.7% by YE 16, says Barclays. Therefore, it will not allow the BoE to hold the current rates till second half of 2016.